McDonald’s loyalty program members generated over $6 billion in system-wide sales globally in the first quarter of 2021. In the U.S., the company has 34 million active digital customers, lagging slightly behind Chipotle Mexican Grill with 40 million members and Starbucks with 32.8 million members. Despite this, McDonald’s has set a goal of reaching 100 million loyalty program members by 2027.
To achieve this ambitious target, McDonald’s is suggesting that franchisees use their existing marketing contribution of at least 4% of gross sales. This may require franchisees to shift their focus from traditional marketing strategies like TV commercials to tactics that have a more direct impact on sales. In the U.S., franchisees will be required to contribute 1.2% of projected identified digital sales towards the fund starting in 2025, with the rate changing annually based on yearly projections.
In return for their investment, McDonald’s is forecasting that U.S. restaurants will see an increase in cash flow of approximately $2,600 per year starting in 2025. This boost is a result of digital investment costs being shifted from a franchisee’s profit and loss statement to the marketing contribution. Franchisees in other markets such as Germany, Canada, Australia and the UK will also participate in funding the global digital marketing fund, with other markets expected to follow suit in the future.[